On Tuesday, gold prices experienced a decline on the Multi Commodity Exchange of India as investors sought more clarity regarding the halted peace negotiations between the United States and Iran. Additionally, market participants are closely monitoring significant central bank decisions this week for indications on how the Middle East conflict may have influenced the interest rate outlook. Expectations for renewed diplomatic progress diminished over the weekend following the cancellation of a planned visit to Islamabad by U.S. President Donald Trump’s envoys, Steve Witkoff and Jared Kushner. Iranian Foreign Minister Abbas Araqchi’s arrival in Pakistan occurred concurrently with these developments.
In the domestic market, MCX silver futures for May 2026 delivery decreased by Rs 1,334, reflecting a decline of 0.5%, bringing the price to Rs 2,40,490 per kg. Gold futures for June 2026 delivery remained stable at Rs 1,51,555 per 10 grams. In the previous session, silver decreased by Rs 2,450, while gold fell by nearly Rs 1,000. Increasing crude oil prices generally contribute to inflation by elevating transportation and production expenses, subsequently heightening the probability of elevated interest rates. Gold has long been viewed as a safeguard against inflation; however, elevated interest rates diminish its allure by enhancing the attractiveness of yield-generating assets.
On a global scale, the prices of yellow metal remained stable. Spot gold decreased by 0.1% to $4,679.06 per ounce as of 0217, while U.S. gold futures for June delivery remained unchanged at $4,693.20. In the realm of precious metals, spot silver experienced a decline of 0.8%, settling at $74.91 per ounce, whereas platinum saw an increase of 0.4%, reaching $1,990.29. Manoj Kumar Jain indicated that gold and silver are experiencing significant price fluctuations, with silver expected to maintain its crucial support at $64.00 per troy ounce, whereas gold is projected to remain above $4,470.00 per troy ounce this week. He anticipates that both precious metals will continue to exhibit volatility due to variations in the dollar index and crude oil prices, as well as the forthcoming Federal Reserve monetary policy meeting and progress in U.S.-Iran peace negotiations.
Jain indicates that gold is supported at $4,681-4,640 per troy ounce, with resistance positioned at $4,724-4,770. Silver is currently experiencing support levels between $74.40 and $72.00, while resistance is noted in the range of $76.20 to $78.00 per troy ounce during today’s trading session. On MCX, gold exhibits support levels between Rs 1,50,800 and Rs 1,50,000, while resistance is observed at Rs 1,53,500 to Rs 1,54,200. Silver is currently positioned with support levels ranging from Rs 2,38,800 to Rs 2,35,000, while resistance is observed between Rs 2,44,400 and Rs 2,47,700. He suggests purchasing gold during price declines, provided it maintains a closing level of Rs 1,48,800, with potential upside targets of Rs 1,53,800 to Rs 1,55,000. He recommends purchasing silver during price dips as long as it stays above Rs 2,35,000 on a closing basis, with a target range of Rs 2,48,000 to Rs 2,51,000.